Halifax Clarity reduced credit limit. What to do?

nzpod

Hi everyone,

So I logged onto by internet backing last night to find my credit limit for the Clarity was reduced from 7k to 0.5k quid. No notice. A letter, they say, was generated on the day the reduction too effect but I have not received it.

I was pretty annoyed so complained to Halifax but they say this is within their Terms. And have rejected my complaint. So my question...Is there any point complaining to the Financial Ombudsman??

I don't think anyone there has read the T & Cs. It can be found here

Section 1 states:

If we decrease your credit limit we will let you know before the change takes effect.

I usually use the card for purchases in the UK where the merchant does not take Amex, so low UK use. I, as most people here, use it primarily for overseas spending and it has been great! I always pay off every month, and never roll over. So I presume I am not very profitable for them...

They also say I may have taken out a loan or mortgage recently. I have not. Is it worth paying Experian for a credit history? Thinking maybe ID theft??

Anyway would appreciate thoughts and if anyone has had similar experiences...

Thanks as always

fozmcfc

In short, the Ombudsman won't be interested.

They can reduce the limit at any time, without giving prior notice, it's their choice who they lend to and how much.

The only thing they shouldn't do, is reduce it to a position where you will incur charges for exceeding the credit limit. i.e either because they have reduced it to under your current balance or you'll be over limit once interest/charges are applied to your balance on the next statement.

They don't give prior notice, because someone could just spend up to the limit before the decrease is done.

Your only real complaint is that you still haven't received written notification of the limit change.

It's annoying for someone like you, who pays off balances each month and also if you have a great credit history, it is probably because they make no/little money from you.

If it was me, I'd vote with my feet and all the better if you have other accounts and savings with them that could be moved and they lose out.

nzpod

Thanks thats what I thought.

Just very annoying because its a great overseas CC! Amazing.

fozmcfc

I'd still keep an eye on the thread, it's always worth checking credit reports.

I would sign up if you haven't and check your Noddle report, it's completely free and I have about 12 credit accounts showing, both active and closed.

I can't think of any credit cards/loans/overdrafts and store cards that I have/had that aren't listed.

https://www.noddle.co.uk

Thrugelmir

What else is on your credit file?

Open accounts, available credit, etc.

nzpod

fozmcfc wrote: »

I'd still keep an eye on the thread, it's always worth checking credit reports.

I would sign up if you haven't and check your Noddle report, it's completely free and I have about 12 credit accounts showing, both active and closed.

I can't think of any credit cards/loans/overdrafts and store cards that I have/had that aren't listed.

https://www.noddle.co.uk

Thanks for that. All looks legit really nothing which I have not applied for or that I have.

But how do I go about closing off stuff. Well i have closed accounts/card with other banks but it is still showing up...

Also Halifax has not searched me recently...

All very weird.

LittleVoice

nzpod wrote: »

Thanks for that. All looks legit really nothing which I have not applied for or that I have.

But how do I go about closing off stuff. Well i have closed accounts/card with other banks but it is still showing up...

Also Halifax has not searched me recently...

All very weird.

Do you really want to close your Clarity account?
Even £500 is better than nothing when you are abroad.

After spending on the account while abroad, could you not send funds to the account to cover that spend in order to spend another £500?

Wammer

They did exactly this to me a month ago. I was mortified to log on and see a £500 credit limit.

I called and was told to call back when the Lending Dept was open, before 6pm. When I did I was told they wouldn't talk to me. Like you, the advisor asked if I had taken out any mortgages or loans recently. Nope.

However I did remember that I got a new card and did a balance transfer a couple of months previously.

I wrote to their Personal Lending Decisions and appealed. I felt I put forward a very strong case to have my limit reinstated and it was a week later.

If it had happened a month earlier I would have been in big trouble as I put £2500 on it in 2 weeks.

zagfles

fozmcfc wrote: »

In short, the Ombudsman won't be interested.

They can reduce the limit at any time, without giving prior notice, it's their choice who they lend to and how much.

That's not what the T&C's say. http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/terms/

If we decrease your credit limit we will let you know before the change takes effect.

So they do have to give prior notice (they just don't specify how much). Presumably if you were abroad using the Clarity for what everyone uses it for, they'd have to send you a text otherwise they haven't let you know (unless they expect people to divert their mail when on holiday!)

zagfles

Wammer wrote: »

They did exactly this to me a month ago. I was mortified to log on and see a £500 credit limit.

I called and was told to call back when the Lending Dept was open, before 6pm. When I did I was told they wouldn't talk to me. Like you, the advisor asked if I had taken out any mortgages or loans recently. Nope.

However I did remember that I got a new card and did a balance transfer a couple of months previously.

I wrote to their Personal Lending Decisions and appealed. I felt I put forward a very strong case to have my limit reinstated and it was a week later.

If it had happened a month earlier I would have been in big trouble as I put £2500 on it in 2 weeks.

As a matter of interest was it mainly cash or spending? Was it abroad? Do you pay the cash off straight away?

Just wondering if they're trying to get rid of people using it for just cash, as they'll make a loss from people who just use the Clarity for cash withdrawals and pay it off straight away (virtually no interest, no exchange rate fee and they'll have to pay the ATM's bank for the withdrawal). They probably make a loss on those who pay it off after a couple of weeks as well.

Wammer

Only £500 was cash, the rest was purchases.

I don't just use it on holiday. I was using it up to £300 a month every month until I got the Luma card a few months ago. I still use it between holidays to pay online in USD.

I had no warning either.